Tier 1 Extended Warranty Merchant Account
QuadraPay offers credit card processing to extended warranty and appliance repair companies. Accept online and retail payments with a true omnichannel payment solution.
Sell extended warranty and accept all well-known payment methods, including credit, debit, ach, Interac, and sepa.
What Do Extended Warranty Companies Do?
Equipment manufacturers and third-party warranty companies offer extended warranties. Consumers can choose if they wish to sign up for these optional plans. Extended warranty companies, also called appliance cover companies. They sign maintenance and support contracts for home equipment and automotive with customers for a cost. Extended warranty services are available for different products and industries.
Why Extended Warranty Merchants Considered High Risk?
Not all extended warranty merchants are considered high-risk. This industry is required in many nations. Regulated extended warranty companies are much safer to work with in terms of the risk perspective.
Another reason is the possibility of a high chargeback. It does not take much money to start an online extended warranty company. Often, startup entrepreneurs believe they may offer these services in multiple locations within an agent partnership model.
However, this does not work well all the time. External agents at remote locations may not meet the deadlines and SLA of the warranty company. Non-adherence to SLA results in high chargeback and may also result in the closure of the account.
KYC For Extended Warranty
The applicant is supposed to send the filled merchant account application to the payment service provider. This is usually a two to three-page document that collects vital information about the merchant’s business and sales projection. The most common
KYC documents include the following.
Business license | National ID | Void Check | Last 6 months processing history | Domain Whois certificate for online payments/ Store photo for retail payments | FCA or similar registration if applicable.
The acquiring institution may ask for additional documents.
